Peres demands West Bank withdrawal

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The Israeli opposition leader, Shimon Peres, has demanded that the Government agree to a big withdrawal from the West Bank - which goes far beyond its proposed removal of Jewish settlers from the Gaza Strip - before his Labour Party will join the coalition of the Prime Minister, Ariel Sharon.

Mr Peres's demands, which are unlikely to be met, could be a bargaining tactic for gaining more cabinet ministries.

The bribery scandal around Mr Sharon was reignited on Sunday, days after the Attorney-General, Menachem Mazuz, closed an investigation, citing lack of evidence. Legal experts in the Government said the decision not to pursue the "Greek island affair" could now be reassessed.

Justice Ministry officials expect the High Court will order Mr Mazuz to cancel his decision, and a committee of parliament will debate the matter today.